Loading...
•
Jun 30, 2022
Stagwell Q2 2022 Earnings Report
Delivered double-digit revenue growth and reiterated guidance driven by global media performance and continued digital acceleration.
Key Takeaways
Stagwell reported strong second quarter results with GAAP revenue of $672.9 million, net revenue of $556.3 million, and Adjusted EBITDA of $111.3 million. Pro forma organic net revenue increased 16% over the prior period, and Adjusted EBITDA margins remained strong at 20% of net revenue.
2Q GAAP Revenue grew 221.1% and 21.2% on a Pro Forma basis; YTD Pro Forma growth of 26.0%
Pro-Forma Organic Net Revenue grew 16.0% in 2Q and 19.1% YTD
Net Income of $24.5M in 2Q and Diluted EPS of $0.08 per share
57% of 2Q Net Revenue came from high-growth digital services
Revenue by Segment
Forward Guidance
The company reaffirms 2022 full-year organic net revenue growth outlook of 18%-22% and Adjusted EBITDA of $450-$480 million.
Positive Outlook
- Pro Forma Organic Net Revenue growth of 18% – 22%
- Pro Forma Organic Net Revenue growth ex-Advocacy of 13% – 17%
- Adjusted EBITDA of $450 million - $480 million, excluding the contribution from 2022 acquisitions
- Pro Forma Free Cash Flow growth of approximately 30%
- Guidance assumes no impact from foreign exchange, acquisitions or dispositions.
Challenges Ahead
- risks associated with international, national and regional unfavorable economic conditions that could affect the Company or its clients
- the continued impact of the coronavirus pandemic (“COVID-19”), and evolving strains of COVID-19 on the economy and demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties
- an inability to realize expected benefits of the combination of the Company’s business with the business of MDC (the “Business Combination” and, together with the related transactions, the “Transactions”)
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...